Deficit Spending Rises by 144% to N609bn in January, February

Federal Government deficit spending rose by 144 percent year-on-year in the first two months of the year to N650 billion, up from N250 billion in the same period of 2019.

In the monthly economic report released for the months of January and February 2020 on Tuesday, the Central Bank of Nigeria said the sharp increase was due to a 54 percent increase in the Federal Government’s expenditure from N798.9 billion in the corresponding period of 2019 to N1.22 trillion in 2020.

The report also noted that the increased erased the 13 percent increase recorded in retained revenue from N548.9 billion in the same period of 2019 to N619.3 billion in January and February 2020.

Breaking down fiscal activities, the CBN said “At N325.54 billion, the estimated Federal Government retained revenue for the month of January 2020 was below the monthly budget of N705.44 billion by 53.9 per cent.

“At N587.05 billion, the estimated total expenditure of the Federal government was below the monthly budget estimate of N865.31 billion by 32.2 per cent. It was also below the N757.07 billion recorded in the preceding month by 22.5 per cent.

“At N293.80 billion, the estimated Federal Government retained revenue for the month of February 2020 was below the monthly budget estimate of N705.44 billion by 58.4 per cent.

“At N641.08 billion, the estimated total expenditure of the Federal Government was below the monthly budget estimate of N865.31 billion by 25.9 per cent. It was, however, above the N587.05 billion recorded in the preceding month by 9.2 per cent.”